Tax questions about 1099-B vs. K-1?
Tax questions about 1099-B vs. K-1?
In 2010, I made a small amount of investment in a stock (bought and then sold in the same year). I then got two forms. First of all, my broker sent me a 1099-B form with that stock in it. Secondly, I got a separate K-1 form exclusively for that stock. My question is, which one I should file with or both? Thank you for your help.
William
Answers:
cainvest1: You don't give enough info for a clear answer. Was this a Master Limited Partnership that you bought and sold? If so, you use both forms. The K-1 shows the amount distributed to you in capital gains and dividends. The 1099 shows the amount of capital gains/losses on the sale. The K-1 flows to line 12 of Schedule D. The 1099 flows depending on what is reported.
2011-03-18 16:38:44
2011-03-18 16:38:44
Chosen Answer
Stephen: They both must be filed and reported to the IRS. The 1099-B and supplemental information from your brokerage describes your capital gains and losses from trading the stock in the MLP (master limited partnership) firm you held during 2010. The K-1 describes your share of business income, losses, distributions and expenses, as well as your capital investment in the MLP generating the K-1. If you are using a prog like Turbo tax, in many cases, all of this information can be imported automatically into your tax returrn. Besides banks and brokerages, most of the MLP's I own (i.e., all but two) provide automated entry of the K-1 information into Turbo Tax
2011-03-18 16:41:41
Stephen: They both must be filed and reported to the IRS. The 1099-B and supplemental information from your brokerage describes your capital gains and losses from trading the stock in the MLP (master limited partnership) firm you held during 2010. The K-1 describes your share of business income, losses, distributions and expenses, as well as your capital investment in the MLP generating the K-1. If you are using a prog like Turbo tax, in many cases, all of this information can be imported automatically into your tax returrn. Besides banks and brokerages, most of the MLP's I own (i.e., all but two) provide automated entry of the K-1 information into Turbo Tax
2011-03-18 16:41:41